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Cisco CEO John Chambers appears to have knowingly lyed to Wall Street
Sun, 12/5/10 - 11:59pm    View comments

During Cisco's Q1 FY'11 earnings conference call (view transcript), Cisco CEO John Chambers specifically and very emphatically stated to Wall Street analysts and the investing public:

"Consumer was flat year-over-year."

However, 13-days after Cisco's Q1 FY'11 earnings call, Cisco filed its Form 10-Q (page 35) with the U.S. Securities and Exchange Commission which specifically and very emphatically states:

"Our consumer market experienced a sales decline on a year-over-year basis for the first quarter of fiscal 2011."

Alarmingly in my opinion, the press published John Chambers' Q1 FY'11 earnings conference call statement, for example, The Register reported:

"Sales to smaller companies were up 13 per cent, and consumer sales were flat."

And in another example, Computer Reseller News (CRN) reported:

"Non-public sector enterprise sales grew 16 percent, and commercial, or midmarket and SMB sales, grew 13 percent. Consumer sales were flat."

So did Cisco CEO John Chambers knowingly tell a lie to Wall Street?

The answer is no!

The press was confused, because during the earnings call when John Chambers stated:

"Consumer was flat year-over-year," Chambers was referring to "order growth", not sales or revenue.

What's your take?

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